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32 Business overview Overview AmericasOverview sales and distribution channelsAegon USAAegon USA uses a variety of sales and distribution channels in the United States.These include:Independent and career agentsFinancial plannersRegistered representativesIndependent marketing organizationsBanks Regional and independent broker-dealersBenet consulting firmsWirehouses Affinity groups Institutional partnersThird party administratorsIn addition, Aegon USA provides a range of products and services online, and usesdirect and worksite marketing. This approach allows Aegon USA customers moreways to access products and services. Generally, Aegon USA companies arefocused on particular products or market segments, ranging from lower income tohigh-net-worth individuals and from small to large corporations.Aegon CanadaAegon Canada uses a variety of distribution channels which promote, and processbusiness of, independent financial advisers. These channels are: Independent and career agents Independent managing general agencies Agencies owned by Transamerica Life Canada Bank-owned national broker-dealers and mutual fund dealersOverview business lines Aegon USALife & Protection Life & Protection offers a comprehensive portfolio of products tailored to meet thediverse needs of its key stakeholders: families and individuals, business clients anddistributors.ProductsProducts offered include whole life, universal life, variable universal life, indexeduniversal life and term life insurance, and supplemental health, special accident,and long-term care protection products.Life & Protection (L&P), the largest of the Aegon USA divisions, serves customersin a broad range of market segments. Consumers can choose to purchase directlyor through career/ independent agents or sponsored/affinity groups. L&P offers awide array of life, health and specialty insurance with a common purpose: to protectfamilies and their dreams.Term life insuranceTerm life insurance provides protection for a stated period of time. Benefits are paidto policy beneficiaries in the event of the death of the insured during a specifiedperiod.Universal life insuranceUniversal life insurance pays death benefits, accumulates cash values at interestrates that adjust periodically, and has flexible premiums. Indexed universal lifeproducts have both interest rate guarantees and interest crediting linked in part toperformance of an index, subject to a cap. Variable universal life products includevarying investment options for cash values.Whole life insuranceWhole (permanent) life insurance provides life-long death benefit protection as longas required premiums are paid, while accumulating tabular cash values based onstatutory requirements. Premiums are generally fixed and usually payable over thelife of the policy.Other life insuranceLife products also include life insurance sold as part of defined benefit pensionplans, single premium products, and additional optional benefits.Supplemental health and specialty insuranceSupplemental health insurance products are sold primarily through affinity marketsand include accidental death, other injury, critical illness, hospital indemnity,Medicare supplement, and student health. Specialty lines include travel,membership and creditor (installment/mortgage/guaranteed auto protection)products.Long-term care insuranceLong-term care (LTC) insurance products provide benefits to policyholders whorequire care due to a chronic illness or cognitive impairment. LTC insurance servesas an asset protection tool by reimbursing policyholders for costly expensesassociated with LTC services, and it may also help a family better manage thefinancial, health and safety issues that are associated with LTC.Sales and distributionThe Life & Protection division is organized by distribution channel, with a sharedservices support platform. Each channel focuses on a specific type of distributionmethod and target market. The L&P distribution channels include affinity markets,agency group, brokerage, international markets, and broker-dealer.Affinity MarketsThe Affinity Markets group markets directly to consumers through either the broadmarket or affinity relationships, including associations, employers, financialinstitutions, retailers, and other sponsor groups. Life, supplemental health, and